‘We have to understand that our economy cannot sustain subsidies indefinitely’
The Minister of Power, Adebayo Adelabu, has declared that Nigeria can no longer sustain electricity subsidies, urging citizens to prepare for cost-reflective tariffs. Speaking during a meeting with power generation company chairmen in Abuja, Adelabu stated, “We have to understand that our economy cannot sustain subsidies indefinitely.” The Federal Government currently owes Gencos over N4 trillion in unpaid subsidy debts.
Data from NERC shows the actual cost of power is N116.18/kWh, but consumers pay just N88.2/kWh, leaving a N27.97/kWh subsidy gap. Adelabu emphasized, “Citizens must pay the appropriate price for the energy consumed,” though he assured targeted subsidies for low-income households. Only Band A customers currently pay unsubsidized rates.
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